The selected inventory costing method impacts:
A)Gross profit and ending inventory.
B)Sales.
C)The physical flow of goods.
D)Amount of inventory on hand.
E)The shipping terms to the buyer.

Question

Quizplus · Accepted Answer

The inventory costing method (such as FIFO, LIFO, or weighted average) affects the cost of goods sold and, consequently, the gross profit and the value of ending inventory. It does not directly impact sales, the physical flow of goods, the amount of inventory on hand, or the shipping terms to the buyer.

The Selected Inventory Costing Method Impacts